Tail wind coming for wool, but industry has work to do
Wool is about to catch a tail wind, but there’s still some work to do, says Minister for Rural Communities and Associate Minister for Agriculture Mark Patterson.
Speaking at a wool event held in Waimahaka, Southland, Patterson said with many manufacturers moving away from petrochemical materials and into natural fibres, there’s a tailwind coming for wool – but the industry will have to work out how it takes advantage of this.
“We can put an extra two or three bucks on the price of wool by selling more carpet and insulation, and we absolutely must do that, but it’s not going to change the game to the point that we really need to get up towards – that magic $10 a kilogram,” Patterson said.
Farmers at the meeting said $10/kg for both lamb and wool would be the price point where dairy conversions were less likely and wool became lucrative again.
Patterson said high value uses that support a higher farmgate wool price is the way forward, and a number of local companies have developed products in the sanitary, medical, dye and pigment space that increased both the demand and the price of wool.
“Inks and dyes are a game-changer,” Patterson said.
The government recently gave a strong signal when it indicated that government buildings need to use wool products.
“If we aren’t prepared to use wool in our own building portfolio, how can we credibly go out and promote it to other businesses and other countries?”
Patterson said he wants to know what an enduring voice or representative body for wool looks like.
“That’s why I’m in the role that I’m in – there’s no one who speaks to the government on behalf of wool. Since the levy got voted down there has been no voice for wool.”
The industry has some work to do, he said.
He said there is $2/kg to $3/kg lost due to supply chain inefficiencies.
“We essentially have the same model of selling our wool that we did 100 years ago. I would like that discussion to be raging amongst farmers.
“We’ve also got the job to do around preparation. There is a concern about this declining standard of our wool clip.
“If we want to sell a premium, strong white wool to the world, it’s got to be what it says on the tin.”
Low quality wool impacts manufacturing, he said.
Animal welfare also needs to be addressed.
Video clips of a shearer mistreating sheep “were absolutely damaging” and had been seen over a billion times.
“We have to take interest in what’s happening in our woolsheds and make sure we’re holding contractors and staff to account.
“We cannot afford that headwind,” Patterson said.